Administration

Administration is a term used to describe a situation relating to the possible insolvency of a business. Under an “Administration Order”, a court supervises the affairs of a company in financial difficulties with to the aim of securing its survival as a going concern or, failing that, to achieving a more favourable realisation of its assets than would be possible on liquidation. While the administration order is in force, the affairs of the company are managed by an “administrator”.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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